 | Home > General & Technical (L663) > Most tax efficient model for self employed. |
 
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| Morepower Member Since: 08 Jan 2013 Location: Fife, Scotland Posts: 630  
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This was the same dilemma I was in... I loved my Bowler 110 USW and was really looking forward to the new 110... However, No one ton load capacity and 5 seats... Just scrapes in as a 'utility' as the load area is bigger than the passenger area...
After that, Your stuffed on the BIK... Unless they bring in a full battery model... Regards Tim It doesn't matter how bad it is, It can always get worse... 2013 Bowler 110 (Sold) 2016 Bowler 90 Rally Spec (Sold) |
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20th Jun 2021 7:19pm |
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| AndrewS Member Since: 10 Apr 2007 Location: Hereford Posts: 3708  
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Your accountant will be able to advise to suit your individual circumstances. 130's have feeling's as well you know
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20th Jun 2021 9:07pm |
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| hotwheels Member Since: 30 Jan 2021 Location: South Posts: 20
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Unfortunately my accountant isn’t familiar with the different models she can check if I advise her which one I’m looking at, basically hardtop = commercial vehicle as long as used solely for business so vat back and tax back on the completed purchase, a friend has a Porsche tacan and gets same benefits, does any of the new defender lineup give similar benefits?
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21st Jun 2021 5:31am |
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| AMBxx Member Since: 24 Jul 2016 Location: York Posts: 1032 
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I'm sure my accountant said there's a list from HMRC. No idea if that's still correct.
Isn't the law being tightened up to prevent so many people just buying a pickup for business use? |
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21st Jun 2021 5:55am |
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| Retroanaconda Member Since: 04 Jan 2012 Location: Scotland Posts: 2656 
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Just get a hardtop and convert back to seats, and hope you don’t get stopped. That’s what many seem to do.
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21st Jun 2021 6:51am |
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| Ryderoo Member Since: 28 Aug 2015 Location: South Oxfordshire Posts: 1666  
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hotwheels, do you currently run a commercial vehicle through the business?
If so what type of vehicle? If you need a new 5 seat commercial vehicle and want to have full tax benefits, I’m thinking only available types will be double cab pick ups or kombi/crew style vans. There are some very nice variants of these vehicles. I think Anything else will not provide the same tax benefit. As an employer there is only 50% vat reclaimable on any car be it electric or not, even including the gov grants and your BIK as the driver, I reckon it is still more tax efficient to run a commercial vehicle if you can or a commercial ev if there are 5 seater variants. I’m just a business owner, who has run vans and double cabs in past but have never run a car through the business, the above are just my own views on the subject. In your predicament I would follow AndrewS advice and speak with your accountant, HMRC can assist her plus she knows your personal and business accounts and can advise best route for you. Cheers Simon I can explain it to you, but I can't understand it for you 1990 110 TD5 county, my first Land Rover - gone 2012 Discovery 4 XS SDV6 - gone 2014 Discovery 4 XS SDV6 - gone 2015 Evoque SD4 dynamic - Wife’s - gone 2015 Urban Truck 90 XS Santorini Black Hard Top - Reluctantly gone 2020 Discovery 5 Eiger Grey 3.0 SE - gone March 24 2021 Defender S D250 Santorini Black 110 HT - gone March 24 2023 Evoque P300e SE wife’s current vehicle |
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21st Jun 2021 6:54am |
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| camelman Member Since: 27 Feb 2013 Location: Peak District Posts: 3373
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The Porsche Taycan is All electric so benefits from Zero rated Benefit in Kind for the next couple of years. Still can only reclaim VAT if not available for private use.
You can go down the hardtop 'van' route but that won't give you the 5 seats and will also attract a small benefit in kind charge of tax on £3600 if there is any personal use. As it is commercial, it counts as 'plant' so there are also benefits in that there is a favourable corporation tax reduction scheme in place for this and next year. You are also limited to 60mph on Dual Carriageways as its a van. Using a 'car' based 90/110 for anything other than strict business use, because of the high emmissions, will attract a huge benefit in kind of approx 37% of the vehicles value each year. VAT can only be reclaimed if the car is not available for personal use. If you lease the vehicle however, 50% of the VAT can be recovered if it is not available for personal use. The most tax efficient (from a personal tax point) will be the hybrid p400e as that only has a benefit in kind charge of 18%, you're paying £85k for the motor though... As Ryderoo says, there isn't really a tax efficient 5 seat option at the minute if you want it to include personal use, hence why commercial double cab pickups are still so popular.  Last edited by camelman on 21st Jun 2021 7:06am. Edited 1 time in total |
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21st Jun 2021 6:59am |
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| Ryderoo Member Since: 28 Aug 2015 Location: South Oxfordshire Posts: 1666
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A mate did it when he bought his new 2014 discovery 4 commercial. It did save a few quid but was running the gauntlet, all that vat to pay back and tax relief and benefit in kind of caught. Plus I think back then the commercial variant was quite a bit cheaper than standard model, but now a base spec 110 hardtop net price is £2k more than basic spec normal model on the road price!! Cheers Simon I can explain it to you, but I can't understand it for you 1990 110 TD5 county, my first Land Rover - gone 2012 Discovery 4 XS SDV6 - gone 2014 Discovery 4 XS SDV6 - gone 2015 Evoque SD4 dynamic - Wife’s - gone 2015 Urban Truck 90 XS Santorini Black Hard Top - Reluctantly gone 2020 Discovery 5 Eiger Grey 3.0 SE - gone March 24 2021 Defender S D250 Santorini Black 110 HT - gone March 24 2023 Evoque P300e SE wife’s current vehicle |
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21st Jun 2021 7:05am |
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| hotwheels Member Since: 30 Jan 2021 Location: South Posts: 20
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Not sure that the hardtop with rear seats is a good idea as I’m not sure I would be insured....... thanks to everyone for the comments, I think the phev option is favourable but the £85k price is not lol!!!! I’m actually running the hardtop at the moment but lack of rear seats means I have to use my personal car when collecting customers etc.... and whilst I’m insured to do this keeping track of mileage and wear and tear is a pain, my hardtop is purely business as I use personal car to commute etc.... but picking up more than usual dinks using my personal car, on a more positive note my hardtop is fantastic!!!
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21st Jun 2021 7:19am |
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| oop north Member Since: 23 Mar 2016 Location: Preston-ish Posts: 59
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Any of the above comments mentioning benefit in kind are off the mark - the OP is self-employed so bik is utterly irrelevant. That applies to employees, not the self-employed.
The simplest solution is to use your private car for collecting customers and charge the business 45p per mile for that use. That would be completely tax free for the first 10k miles in a tax year. After that you are into the murky area of double cabs and pretty strict restrictions - there was a recent tax case that made it harder I think (I am an accountant but not a tax specialist) to get the full VAT back and 100% write down against profits in year one |
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21st Jun 2021 9:59am |
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| 4B4B Member Since: 30 Apr 2021 Location: Midlands Posts: 83
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Self-employed... as a sole trader? or a limited company? That status will make a difference too. Defender 90 HSE 250D 2022MY - Gave up after two failed orders
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21st Jun 2021 10:21am |
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| hotwheels Member Since: 30 Jan 2021 Location: South Posts: 20
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I’m a vat registered sole trader not ltd company
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21st Jun 2021 5:35pm |
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